LOC10:33
07:33 GMT
TOKYO, Nov 18 (KUNA) -- Japan's Suzuki Motor Corp. will try to resolve a
dispute over its partnership with German car giant Volkswagen AG at an
international court of arbitration, a top-selling business daily here reported
Friday.
Suzuki asked Volkswagen to terminate the capital tie-up in September but
the request was turned down. Volkswagen, which holds a 19.9 percent stake in
Suzuki, has not changed its stance since then.
At an extraordinary board meeting on Friday, Suzuki decided to bring the
case to an international court and notified Volkswagen of its decision,
according to the Nikkei Shimbun.
The main point of contention is likely to be how to dissolve the capital
ties between the two firms, but Suzuki executives also decided Friday to end
the company's business tie-up with Volkswagen in such areas as the joint
development of eco-cars, work on which has already been suspended, the
newspaper said.
Suzuki told Volkswagen last month that the German firm had violated the
partnership agreement by not providing sufficient information on its
environmental technology as agreed.
For this reason, it urged the German carmaker to sell the stake back to
Suzuki because the investment was made based on condition that the technology
to be shared. Volkswagen contends it did not violate the agreement.
The tie-up deal between the automakers that was formed in December 2009 is
thought to include an agreement that in the event of a dispute, the two should
seek a resolution at an international court of arbitration outside Japan and
Germany. (end)
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KUNA 181033 Nov 11NNNN